The initial payment amount will be split equally between the companies.
A final payment of $1.0m will be obtained later this year for the West Spyglass Prospect marking the completion of the sale.
Furthermore, Eternal Energy will close its Pebble Beach Prospect sale and receive approximately $1.9m later next week, in a separate transaction.
Eternal Energy will remain the operator on the two Prospects, under the terms of the agreements.
Eternal Energy President Brad Colby said that the sale provides both Eternal Energy and American Eagle Energy with the near-term operating capital which will allow the companies to aggressively implement the companies drilling program during the next year.
"As we previously announced, the sale of these partial interests significantly bolsters the companies’ balance sheets and," added Colby.
